420worksheet11

420worksheet11 - The capital-output ratio is 2.5...

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ECON 420 – 002 and 004 Worksheet 11 Evaluate whether the following economies need policies to change saving rates and if so what type of policy: 1. The capital-output ratio is 2 Depreciation of capital is 10% of GDP Capital income is about 1/5 of GDP Real GDP grows at 5%. 2.
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Unformatted text preview: The capital-output ratio is 2.5 Depreciation of capital is 10% of GDP Capital income is about 0.30 of GDP Real GDP grows at 10%. 3. The capital-output ratio is 2.5 Depreciation of capital is 10% of GDP Capital income is about 0.30 of GDP Real GDP grows at 4%....
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